Uchumi Supermarket Shuts Down 5 Outlets

The local market closed on a bleak state, as the NSE 20-share index closed on a downturn plunging by 0.20% to 3938.22 points. The NSE All Share Index went down by 0.42% to close at 145.07 points while the NSE 25 Share Index followed suit, declining by 0.79% to close at 4194.78 points. Market capitalization contracted by 0.42% to KES 2,044.73 billion as equity turnover dropped by 60.31% to KES 0.460 billion, attributable to a decrease in volumes traded. Market breadth, an unbiased measure of the market performance, indicated that the market conditions had improved marginally; with the number of stocks that advanced, 24, outweighing the number of stocks that declined, 18.

Uchumi supermarket (NSE: UCHM) has announced termination of operations in 5 outlets namely; Taj Mall, Embu, Eldoret Sugarland, Nakuru and Kisii as part of its turnaround plan. This comes months after Uchumi closed of its operations in Tanzania and Uganda in a reorganisation exercise. The management justified the move as a means of reducing the retailer’s operational costs, which will enable it to focus on a leaner structure; as dictated by the current business environment. We portend that the turnaround strategies being embraced by the retailer will yield fruit in the long term, therefore a possible improvement on their overall profitability.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 29.49% of the total market value traded activity. KCB Group Ltd (NSE: KCB) also registered stout levels of activity, accounting for 15.83% of the total market turnover.

B.O.C Kenya Ltd (NSE: BOC) was the top gainer of the day, gaining 9.47% to close the day at KES 104. Longhorn Publishers Ltd (NSE: LKL) advanced by 7.55% to close the day as the second best gainer at KES 5.70.

Britam Holdings Ltd (NSE: BRIT) led the losers pack, shedding 8.26% to close at KES 10.00. Pan Africa Insurance Holdings (NSE: PAFR) followed a close second as it retreated by 6.88% to KES 44, closing as the second biggest loser for the day.

Written by Genghis Research.